JUSUN, PASAN Strikes: FG, Govs Table Revenue-Sharing Model To End Financial Autonomy Dispute

*States To Set Up Revenue Allocation Committees
*New System Takes Effect 45 Days After Agreement

The federal government and governors of the 36 states of the
federation have agreed on a revenue-sharing formula to resolve the
raging dispute over the full implementation of financial autonomy
for state judiciaries and legislatures, According to ThisDay report.^[1]

If the agreement is accepted by judicial and parliamentary
workers, who have been on a strike for over one month to press home
their demands for financial autonomy for the two arms of government
in the 36 states of the federation, funds from the Federation
Account due to each state are to be jointly shared among the
executive, legislature and judiciary in each state.

The new proposal, which was given to the leadership of both the
Judiciary Staff Union of Nigeria (JUSUN) and Parliamentary Staff
Association of Nigeria (PASAN) at a conciliatory meeting last
Thursday in Abuja, seeks to replicate the federal revenue-sharing
structure in the states.

Our correspondent gathered that under the new template, the
governors will establish, within 45 days of the agreement, States
Accounts Allocation Committee (SAAC) to share revenues among the
executive, the judiciary and the legislature, the same way the
Federal Accounts Allocation Committee (FAAC) shares revenue between
the federal, states and local government councils.

The proposal also stipulates that the Accountant General of the
Federation (AGF) will invoke Executive Order 10 against any state
that fails to abide by the terms of the agreement.

A presidency source told our correspondent at the weekend that
among the new offers made to the judiciary and legislative workers
by the federal and state governments was a reassurance that state
governors are committed to implementing full financial autonomy for
the two arms of government.

“They also agreed that they will set up all the structures
necessary for the implementation of the financial autonomy,
including the budget committee where the judiciaries and state
legislatures will forward their expenditure estimates. That will be
based on the budget envelope of the projected annual revenue
earning for the arms of government as is being done at the federal
level,” he said.

According to the source, when the executive, judiciary and
legislature prepare their annual budget estimates, they will
forward them to the state House of Assembly for consideration and
approvals.

“So when the revenue comes from the federal and the Internally
Generated Revenue (IGR), the State Fund Allocation Committee will
now convene the State Accounts Allocations Committee (SAAC), which
will now oversee the disbursement of money to different arms of
government,” he stated.

He added that each state will ensure that it establishes Fund
Allocation Committee for its legislature and judiciary to be headed
by the head of the courts and the legislature.
“The two arms of government will also be expected to set up a
tenders’ board to be headed by the court registrar and clerk of the
state Houses Assembly,” he said.

He added that the same structure at the federal level would be
transposed down to the states. He said the same template used by
the National Judicial Council (NJC) at the federal level would be
adopted in disbursing funds to the judiciary in the states.

He said under the new arrangement, state Fund Allocation
Committee would be headed by the state Commissioner for Finance.
Also, state Houses of Assembly will be allocated funds in the same
manner that the National Assembly receives its allocation after the
budget approval.

“So, if there is a breach on the part of the state government
that will trigger off Executive Order 10, which empowers the
Accountant-General of the Federation to remit funds directly to the
state judicial and legislative arms of government. But if you are
doing all that is provided in the proposed template, there will be
no need to invoke the Executive Order,” he said.

The striking judicial and legislative workers had earlier vowed
not to compromise on their demands for the implementation of 1999
Constitution as altered.

The workers said last week at a meeting with a federal
government team, led by Minister of Labour and Employment, Dr.
Chris Ngige, that the issue of financial autonomy for state
legislatures and judiciaries was a constitutional provision that
did not warrant any negotiation with governors.

JUSUN and PASAN had also insisted that the governors must fully
implement financial autonomy for the two arms of government in the
36 states of the federation as guaranteed by the constitution
before the strike would be called off.

The federal government had also pleaded with the unions to
consider the efforts being made to resolve the dispute and suspend
their strike to enable the court and legislatures to reopen.

Ngige had said last week that progress had been made in about 90
per cent of the issues in dispute.

However, the meeting between the federal government team and the
leadership of the unions had ended with an agreement that the
unions should go and study the government’s proposal before the
next meeting, billed for tomorrow.

*States To Set Up Revenue Allocation Committees
*New System Takes Effect 45 Days After Agreement

The federal government and governors of the 36 states of the
federation have agreed on a revenue-sharing formula to resolve the
raging dispute over the full implementation of financial autonomy
for state judiciaries and legislatures, According to ThisDay report.^[1]

If the agreement is accepted by judicial and parliamentary
workers, who have been on a strike for over one month to press home
their demands for financial autonomy for the two arms of government
in the 36 states of the federation, funds from the Federation
Account due to each state are to be jointly shared among the
executive, legislature and judiciary in each state.

The new proposal, which was given to the leadership of both the
Judiciary Staff Union of Nigeria (JUSUN) and Parliamentary Staff
Association of Nigeria (PASAN) at a conciliatory meeting last
Thursday in Abuja, seeks to replicate the federal revenue-sharing
structure in the states.

Our correspondent gathered that under the new template, the
governors will establish, within 45 days of the agreement, States
Accounts Allocation Committee (SAAC) to share revenues among the
executive, the judiciary and the legislature, the same way the
Federal Accounts Allocation Committee (FAAC) shares revenue between
the federal, states and local government councils.

The proposal also stipulates that the Accountant General of the
Federation (AGF) will invoke Executive Order 10 against any state
that fails to abide by the terms of the agreement.

A presidency source told our correspondent at the weekend that
among the new offers made to the judiciary and legislative workers
by the federal and state governments was a reassurance that state
governors are committed to implementing full financial autonomy for
the two arms of government.

“They also agreed that they will set up all the structures
necessary for the implementation of the financial autonomy,
including the budget committee where the judiciaries and state
legislatures will forward their expenditure estimates. That will be
based on the budget envelope of the projected annual revenue
earning for the arms of government as is being done at the federal
level,” he said.

According to the source, when the executive, judiciary and
legislature prepare their annual budget estimates, they will
forward them to the state House of Assembly for consideration and
approvals.

“So when the revenue comes from the federal and the Internally
Generated Revenue (IGR), the State Fund Allocation Committee will
now convene the State Accounts Allocations Committee (SAAC), which
will now oversee the disbursement of money to different arms of
government,” he stated.

He added that each state will ensure that it establishes Fund
Allocation Committee for its legislature and judiciary to be headed
by the head of the courts and the legislature.
“The two arms of government will also be expected to set up a
tenders’ board to be headed by the court registrar and clerk of the
state Houses Assembly,” he said.

He added that the same structure at the federal level would be
transposed down to the states. He said the same template used by
the National Judicial Council (NJC) at the federal level would be
adopted in disbursing funds to the judiciary in the states.

He said under the new arrangement, state Fund Allocation
Committee would be headed by the state Commissioner for Finance.
Also, state Houses of Assembly will be allocated funds in the same
manner that the National Assembly receives its allocation after the
budget approval.

“So, if there is a breach on the part of the state government
that will trigger off Executive Order 10, which empowers the
Accountant-General of the Federation to remit funds directly to the
state judicial and legislative arms of government. But if you are
doing all that is provided in the proposed template, there will be
no need to invoke the Executive Order,” he said.

The striking judicial and legislative workers had earlier vowed
not to compromise on their demands for the implementation of 1999
Constitution as altered.

The workers said last week at a meeting with a federal
government team, led by Minister of Labour and Employment, Dr.
Chris Ngige, that the issue of financial autonomy for state
legislatures and judiciaries was a constitutional provision that
did not warrant any negotiation with governors.

JUSUN and PASAN had also insisted that the governors must fully
implement financial autonomy for the two arms of government in the
36 states of the federation as guaranteed by the constitution
before the strike would be called off.

The federal government had also pleaded with the unions to
consider the efforts being made to resolve the dispute and suspend
their strike to enable the court and legislatures to reopen.

Ngige had said last week that progress had been made in about 90
per cent of the issues in dispute.

However, the meeting between the federal government team and the
leadership of the unions had ended with an agreement that the
unions should go and study the government’s proposal before the
next meeting, billed for tomorrow.